The December 31, 2021, trial balance of Bobs Delivery Service, before adjusting entries, included the following selected
Question:
The December 31, 2021, trial balance of Bob’s Delivery Service, before adjusting entries, included the following selected accounts.
This is a partial trial balance. Many accounts are not shown. All accounts have a normal balance.
Accounts receivable | 176,000 |
Notes receivable | 200,000 |
Unearned delivery revenue | 24,000 |
Prepaid rent | 36,000 |
Prepaid insurance | 18,000 |
Equipment | 240,000 |
Accumulated depreciation: equipment | 61,250 |
Salaries expense | 120,000 |
Delivery revenue | 473,300 |
Additional data:
The equipment has an estimated life of 12 years, no residual value, and the straight-line method is used for calculating depreciation.
The prepaid rent was payment for a six-month lease beginning on November 1, 2021.
The prepaid insurance represents the annual premium on a policy providing coverage starting August 1, 2021.
On September 12, 2021, we accepted a $250,000 note from a customer in payment for delivery services. It is a six month note and the interest rate is 9%. You need to count exact days to determine the interest.
The supplies inventory on January1, 2021, was $8,350. Supplies costing $16,650 were acquired during the year. A count on Dec. 31, 2021, indicated supplies on hand of $6,810.
Provide the year end adjusting journal entries for the following situations. Year end is December 31. Do these entries in the order they are presented.
College Accounting A Practical Approach
ISBN: 9780135222416
14th Canadian Edition
Authors: Jeffrey Slater, Debra Good